The Scotland Bill would give Holyrood 10% of VAT revenues, increased power over welfare spending and control over income tax rates. However, the First Minister decried it over Westminster’s ability to veto devolved benefits.
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Sturgeon: 'In some key powers it retains a veto for the UK government'
Sturgeon said: “The UK government had a very clear test today: to deliver a bill which lived up in full, in spirit and in letter to the Smith commission. From my glance… it falls short in almost every area. The bill, for example, doesn’t contain the full welfare powers recommended by the Smith commission."
"In some key powers it retains, unbelievably in my view given the amount of concern that was expressed about this, a veto for the UK government on key policy areas," she added. "If this parliament wants to abolish the bedroom tax, as I hope we do, the UK government would still have a right of veto over whether we could do it or not. Now I’m sorry but that is not devolution.”
The SNP could now push for full fiscal autonomy, bolstered by its landslide general election result earlier this month. Speaking on BBC Radio, Deputy First Minister John Swinney said "other amendments" could be added "to try to strengthen the powers" of the Scottish government.
Earlier on Thursday, Scottish Secretary David Mundell said the new parliament had "moved quickly" to make “Holyrood one of the most powerful devolved parliaments in the world.”
"We made a promise to turn the all-party Smith Commission agreement into law and we are now doing that at the earliest possible opportunity," he said.
On the sticking point of Westminster’s veto, a spokesman for the Scotland Office said: "It is factually wrong to claim there are vetoes in the Bill. These are sensible, practical arrangements to ensure the transfer of new powers smoothly."
Nicola Sturgeon poses for a selfie with a supporter during the CND rally in Glasgow. (credit:Wullie Marr/EMPICS Entertainment)
(02 of17)
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Newly appointed SNP leader Nicola Sturgeon has a selfie taken with delegates, after her speech at the annual party conference at Perth Concert Hall, Scotland. (credit:Andrew Milligan/PA Archive)
(03 of17)
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First Minister Nicola Sturgeon takes a selfie with staff during a visit to Corstorphine Pharmacy in Edinburgh, where she outlined how the SNP's anti-austerity plan will boost Scotland's NHS. (credit:Danny Lawson/PA Wire)
(04 of17)
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First Minister Nicola Sturgeon takes a selfie with a supporter on the campaign trail in Edinburgh as outlines how the SNP's anti-austerity plan will boost Scotland's NHS while. (credit:Danny Lawson/PA Wire)
(05 of17)
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First Minister Nicola Sturgeon has a selfie taken with Livingston SNP candidate Hannah Bardell after giving a speech setting out the SNP's plans to reduce child poverty, at Forestbank Community Centre in Livingston. (credit:Andrew Milligan/PA Wire)
(06 of17)
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First Minister Nicola Sturgeon poses for a selfie after she gave a speech setting out the SNP's plans to reduce child poverty, at Forestbank Community Centre in Livingston. (credit:Andrew Milligan/PA Wire)
(07 of17)
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First Minister Nicola Sturgeon has selfie taken after she gave a speech setting out the SNP's plans to reduce child poverty, at Forestbank Community Centre in Livingston while on the General Election campaign trail. (credit:Andrew Milligan/PA Wire)
(08 of17)
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First Minister Nicola Sturgeon has a selfie taken at La Lombarda restaurant as joins local SNP candidates in Aberdeen city centre while on the General Election campaign trail. (credit:Andrew Milligan/PA Wire)
(09 of17)
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First Minister Nicola Sturgeon has a selfie taken at La Lombarda restaurant as she joins local SNP candidates in Aberdeen city centre while on the General Election campaign trail. (credit:Andrew Milligan/PA Wire)
(10 of17)
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First Minister of Scotland and the Leader of the Scottish National Party, Nicola Sturgeon takes a selfie with SNP supporters after launching the SNP General Election manifesto in Edinburgh. (credit:Danny Lawson/PA Wire)
(11 of17)
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SNP party leader Nicola Sturgeon stops for a selfie after she addressed the annual STUC conference at Ayr Racecourse. (credit:Danny Lawson/PA Wire)
(12 of17)
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SNP leader Nicola Sturgeon (left) stops for a selfie with a member of the public as she arrives at Edinburgh Airport before flying to London. (credit:Danny Lawson/PA Wire)
(13 of17)
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SNP leader Nicola Sturgeon (left) stops for a selfie with a member of the public as she arrives at Edinburgh Airport before flying to London. (credit:Danny Lawson/PA Wire)
(14 of17)
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First Minister of Scotland Nicola Sturgeon takes a selfie with young SNP supporters after posing for photos with newly-elected SNP MPs in front of the Forth Rail Bridge in South Queensferry as the party marks its historic landslide general election victory in Scotland. (credit:Danny Lawson/PA Wire)
(15 of17)
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First Minister of Scotland Nicola Sturgeon takes a selfie with an SNP after a photocall with newly-elected SNP MPs in front of the Forth Rail Bridge in South Queensferry as the party marks its historic landslide general election victory in Scotland. (credit:Danny Lawson/PA Wire)
(16 of17)
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First Minister Nicola Sturgeon poses for a photo with an apprentice mechanic in the canteen at an Arnold Clark training centre in Glasgow as she makes an announcement to mark the start of Scottish Apprenticeship Week. (credit:Andrew Milligan/PA Wire)
(17 of17)
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First Minister Nicola Sturgeon takes a selfie with a group of nurses during a visit to Edinburgh Royal Infirmary where she praised staff as A&E performance figures improved to their best level since weekly figures were first published. (credit:Andrew Milligan/PA Wire)